A Loudoun Mutual personal umbrella policy is designed to provide bodily injury, personal injury, and property damage liability in the event of a catastrophic claim, judgement or lawsuit. With a personal umbrella policy, you are covered if the limits under your primary policy are insufficient. The policy is designed to protect your assets as well as your future earnings.
You likely have liability coverage - auto, homeowner's or watercraft liability. In the event of an accident, you will be protected for bodily injury and property damage, or both - but only up to your policy limit. Beyond that, you would be responsible for paying excess amounts for which you are liable, and the excess amount could reach several million dollars.
Why Do I Need More Insurance? You may say, "We have auto and homeowner's insurance. That should be sufficient. Why would we need an umbrella policy?". In today's society, lawsuits are occurring with alarming frequency. Moreover, the monetary awards can be staggering.
Jury awards and out-of-court settlements routinely run into hundreds of thousands or even millions of dollars. Add to this the cost of legal fees and the expense becomes staggering. An unexpected catastrophe could result in a large judgment against you. Without adequate protection, your current assets could be placed in serious jeopardy. Your existing insurance will protect you against a minor misfortune, but it probably would not give you the needed protection against a catastrophic loss.
A personal umbrella policy could protect you against excess liability judgments for loss, injury, or even death caused by negligent acts.
Besides providing increased liability limits, a personal umbrella policy gives you these additional benefits:
Protection against claims that may not be covered by your underlying policies for homeowners', auto and watercraft liability
Coverage is provided anywhere in the world
Defense costs and attorneys' fees associated with claims against you that are covered by your personal umbrella policy, but not by your primary policies. These expenses are paid in addition to your policy limit.
The personal umbrella policy provides coverage for claims over and above the limits afforded by your existing policies. Consider the following example:
The parents of a teenager provided him with a car. One day, the teenage driver crossed over a median and collided head-on with another vehicle. Two passengers in the other car were killed, and a third was seriously injured. The young driver was found negligent and ordered to pay $1.5 million to settle the injury claims. The parents had an auto policy with a $500,000 per claim liability limit. Fortunately, the parents had purchased an umbrella policy. The auto policy paid $500,000 and the umbrella policy paid the remaining $1.0 million.
It's not a matter of "if" a liability claim will occur, it's a matter of "when". Will your family be adequately protected?